S.Africa's PMI falls to 46.2 in September

Monday, 1 Oct 2012 | 5:01 AM ET

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JOHANNESBURG, Oct 1 (Reuters) - South Africa's seasonally adjusted Purchasing Managers' Index fell into contractionary territory in September, a survey showed on Monday, hitting its lowest level in 14 months and pointing to weak manufacturing production in the third quarter.

The index lost four index points to 46.2 in September, slipping below the 50 mark which separates expansion from contraction for the first time since June this year, survey sponsor Kagiso Tiso Holdings said. This was its weakest showing since July 2011.

"The pullback does not bode well for actual factory sector output in Q3," said Andre Coetzee, managing director of the Chartered Institute of Purchasing and Supply.

The decline in the domestic PMI matches trends in the factory sectors of South Africa's key trading partners, with China's September reading coming in at 49.8, while the index for the euro zone also remains below 50.